Destination characteristics that drive hotel performance: A state-of-the-art global analysis

Assaf, A. George, Josiassen, Alexander, Woo, Linda, Agbola, Frank W., and Tsionas, Mike (2017) Destination characteristics that drive hotel performance: A state-of-the-art global analysis. Tourism Management, 60. pp. 270-279.

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The increased market saturation and competition in both domestic and international tourism destinations have renewed interest among hotel operators in identifying the key drivers of hotel performance. This paper presents a comprehensive analysis of the determinants of hotel performance and their relative importance across multiple tourist destinations. We employ a two-step estimation method to identify key determinants of hotel performance, using a rich sample of international hotels. Our empirical analyses show that the main drivers of hotel performance are the quality of the educational system, government support, disposable income, and number of international arrivals within a tourism destination. Results indicate that the most important barriers to hotel performance are the competition among accommodation providers, tax rate and fuel price. We argue for the need for hotel providers to develop strategies that take cognisance of the key drivers and barriers to enhancing hotel performance in an ever-changing global tourism sector.

Item ID: 73588
Item Type: Article (Research - C1)
ISSN: 1879-3193
Keywords: Determinants of hotel performance, International hotel operators, Sales per outlet, Sales per room, Tourism destinations
Copyright Information: © 2016 Elsevier Ltd. All rights reserved.
Date Deposited: 15 Jun 2022 02:57
FoR Codes: 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3508 Tourism > 350899 Tourism not elsewhere classified @ 100%
SEO Codes: 11 COMMERCIAL SERVICES AND TOURISM > 1199 Other commercial services and tourism > 119901 Hospitality services @ 100%
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